How do you people decide on what you will invest in and what not?
I preferrably always assess the following factors!!!
1. Costs becuz they need to pay expenses and work out how much their bill increases or decreases as the years go by
2. Cost of living and how high it is to operate in the said place and it's changes
3. Suppliers and costs associated with it and it's impact on the business earnings
4. I compare profits over 3-5 year period, I do this to see if it's growing. If profits aren't growing and costs r rising u see the problem, u will be in the red soon.
5. I also always check cost of living in the city I am in and work how much my expenses are and it's predictable rise. I then compare the profits of the company and see how much it covers my expenses plus a good 'blanket' of growth. My aim is to cover my expenses plus my living costs with a good percentage on top of that 50-100% on top. So if my expense is 2k a month, I want 10k a month in profits and growing. I am outstripping my cost of living 10 times over.
6. I analyse the management and ceo, i research their resume and see they have added growth to a company before and what their plans are now. I want to see either they are cutting down on costs to operate(more profits) or gaining new markets(more profits). I am not to fuzzy how they go about it as long as it is proven to add to my bottom line. For example I would more likely invest with 60 year old CEO with a track record then some 20 something with no proof.
7. Finally I work out what signs to look for when things are going down and how I will get out with a high with my money. For example sell on the shares if I see it not growing above my cost of living anymore, it could be profitable but it isnt answering my needs anymore!!! no1 will buy something that has finally gone to death. So if my rate of return was 150% above my cost of living, I will start selling when its around 70% above my cost of living so someone else is attracted to it so I recoup my money invested and everything was just profit.
8. The type of sectors I get into would vary also. health related matters in the west is beneficial as they are aging. 3rd world it would be basic need stuff like food, water, etc. So it will depend what market I am in as to the sector I will go into. I will never invest in something that isn't proven either!!!
Finally, I don't go into stock-market if I don't have a baseline of capital that is worth it. If thousands of shareholders are sharing the profits, u only end up with crumbs unless your initial investment is large then the crumbs are bigger!!!
I preferrably always assess the following factors!!!
1. Costs becuz they need to pay expenses and work out how much their bill increases or decreases as the years go by
2. Cost of living and how high it is to operate in the said place and it's changes
3. Suppliers and costs associated with it and it's impact on the business earnings
4. I compare profits over 3-5 year period, I do this to see if it's growing. If profits aren't growing and costs r rising u see the problem, u will be in the red soon.
5. I also always check cost of living in the city I am in and work how much my expenses are and it's predictable rise. I then compare the profits of the company and see how much it covers my expenses plus a good 'blanket' of growth. My aim is to cover my expenses plus my living costs with a good percentage on top of that 50-100% on top. So if my expense is 2k a month, I want 10k a month in profits and growing. I am outstripping my cost of living 10 times over.
6. I analyse the management and ceo, i research their resume and see they have added growth to a company before and what their plans are now. I want to see either they are cutting down on costs to operate(more profits) or gaining new markets(more profits). I am not to fuzzy how they go about it as long as it is proven to add to my bottom line. For example I would more likely invest with 60 year old CEO with a track record then some 20 something with no proof.
7. Finally I work out what signs to look for when things are going down and how I will get out with a high with my money. For example sell on the shares if I see it not growing above my cost of living anymore, it could be profitable but it isnt answering my needs anymore!!! no1 will buy something that has finally gone to death. So if my rate of return was 150% above my cost of living, I will start selling when its around 70% above my cost of living so someone else is attracted to it so I recoup my money invested and everything was just profit.
8. The type of sectors I get into would vary also. health related matters in the west is beneficial as they are aging. 3rd world it would be basic need stuff like food, water, etc. So it will depend what market I am in as to the sector I will go into. I will never invest in something that isn't proven either!!!
Finally, I don't go into stock-market if I don't have a baseline of capital that is worth it. If thousands of shareholders are sharing the profits, u only end up with crumbs unless your initial investment is large then the crumbs are bigger!!!
